Oman implements successful model of economic diversification

Hong Kong: The Sultanate of Oman is executing a successful model of economic diversification, notably the country’s trade liberalisation in goods and services, says a new report published by Hong Kong Trade Development Council (HKTDC).
The report pointed out that the Sultanate pursued an active plan of development that focuses on diversification, manufacturing and privatisation to diminish the contribution of the oil sector to the Gross Domestic Product to 9 per cent. It noted that tourism and hydrocarbon industries have become the main components of the government’s economic diversification strategy.
HKTDC report added that the Sultanate showed strong commitment to trade liberalisation through its membership at the World Trade Organisation, in addition to a number of bilateral and multilateral trade agreements.
The Omani government took initiatives to modernize the economy, said the Hong Kong institution, noting that increased government spending and direct foreign investment lead to the development of a broad range of non-oil industries.
The report explained that special economic zones in the Sultanate, particularly in Duqm, focus on incentivising economic transformation by combining organisational incentives and strategic geographic location outside the globally tension-prone Strait of Hormuz.
Investment in infrastructure continues to pour into economic zones in Salalah, Duqm, Sohar and Al Mazyouna said the report, adding that this goes in line with domestic development plans (aimed at limiting GDP reliance on the oil and gas sector).
The report noted that, since 2017, the Sultanate attracted a variety of mega investment projects, most of them focusing on export-oriented industrial operations located in special economic zones.
The report indicated that no banking restrictions are imposed on foreign investment transactions or financial transfers. It added that, in terms of portfolio investment, no restrictions are imposed on the flow of capital or profits and those foreign investors are permitted to invest in Muscat Securities Market as long as they do that through a licensed broker.